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Be the first with the news that moves the market- Healthcare software developer VitalHub (VHI) has closed its bought deal offering after raising approximately C$17 million in proceeds
- Through the offering, the company issued 5.86 million shares at a price of $2.90 per common share
- This included 688,275 common shares, which were issued through the exercise of the underwriters’ over-allotment option
- The company will use the proceeds for its growth initiatives, such as acquiring third-party enterprises in the healthcare industry
- Despite its successful capital raise, VitalHub is down 2.65 per cent and is currently trading for $2.57 per share
Healthcare software developer VitalHub (VHI) has closed its bought deal offering after raising approximately C$17 million in proceeds.
The company first announced the bought deal offering just over three weeks ago, on October 26, 2020.
The offering was conducted by a syndicate of underwriters, led by Cormack Securities. Other underwriters within the syndicate included Canaccord Genuity, Beacon Securities, Eight Capital, and Paradigm Capital.
The common shares sold and issued through the offering were qualified for distribution by a short form prospectus in the provinces of Ontario, British Columbia, and Alberta.
Through the bought deal offering, VitalHub issued around 5.86 million of its common shares at $2.90 per each, for just under $17 million in proceeds.
Out of the common shares sold, 688,275 were issued through the exercise of an over-allotment option which was granted to the underwriters. Since it was only a partial exercise of the over-allotment option, the underwriters might use the remaining portion to buy additional common shares in VitalHub at a later date.
VitalHub will use the proceeds from the bought deal offering for its growth initiatives. The company’s growth initiative is mainly focused on acquiring third-party enterprises in the healthcare industry, which may provide synergistic opportunities.
Some funds may also be used for the company’s working capital, and general corporate purposes.
Despite its successful capital raise, VitalHub is down 2.65 per cent and is trading for $2.57 per share, as of 2:17pm EST.
